India's Auto Parts Manufacturing Industry To Reach $80 Billion By 2026 Thanks To MSMEs

India has emerged as a prominent global center for the automobile spare parts industry, with a significant export share of approximately 25% of total production. This growth from being a local supplier to a global player can be attributed to the excellent quality of automotive spare parts coupled with low labour costs. With its position as the world's second-largest steel producer, India offers cost-effective solutions compared to other nations.

The Indian Auto Component industry is witnessing remarkable growth in exports, currently valued at $13.3 billion in FY21. Projections indicate that these exports are anticipated to surge to an impressive $80 billion by 2026. Among the top export destinations for India's auto component industry are the USA, Germany, the UK, Thailand, and Italy. Notably, in the financial year 2021-22, the industry achieved its highest trade surplus of $700 million.

Furthermore, the aftermarket segment, encompassing tire, battery, and brake parts, is poised for substantial expansion, with expectations to reach $32 billion by 2026, a significant increase from its $9.8 billion valuation in FY20. The Indian auto parts manufacturing sector is home to several renowned companies driving this growth. These companies include many MSMEs DNR Autotech, Greenfuel Energy, Jyoti CNC, Phillips Machine & Tools and Greenfuel Energy Solutions.

DNR Autotech caters to CNC and VMC machining of various automobile and non-automobile parts. The company provides auto parts for various 2-wheeler, 3-wheeler, and 4-wheeler applications. With a strong commitment to innovation and improvement, DNR Autotech has been increasing its horizon in the sector. DNR Autotech established direct connections with various Original Equipment Manufacturers (OEMs) and forged partnerships with businesses such as Indian Railways, Defence, and L&T giving a push to Make in India.

Archana Suresh Kute, the Managing Director of DNR Autotech, highlighted the company's strengths, "We believe that our advanced technology-driven equipment and the expertise of our team set us apart in the industry. We are committed to providing the highest quality auto parts to our customers, and our goal is to be their preferred choice."

Akshay Kashyap, MD, Greenfuel Energy Solutions Pvt Ltd said, “There is a huge market for Indian SMEs to capture, as the automotive industry is at the cusp of another revolution. In the auto components industry, the future belongs to those companies that can manufacture good quality and reliable products that can help enable our Prime Minister’s of achieving net zero. As India continues to witness remarkable growth in its auto parts manufacturing industry, these homegrown companies play a crucial role in driving this progress. With their focus on innovation, precision, and commitment to customer satisfaction, these leading Indian auto parts manufacturers are paving the way for the country's further expansion in the global market.”

The future looks promising as projections indicate significant growth in exports and the aftermarket segment, showcasing the immense potential of the Indian auto component industry.